We are in the business of selling entertainment escape

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4 We are in the business of selling entertainment escape In difficult times people want low cost entertainment expenses to forget their worries. Buy a movie ticket Rent DVD Go to a theme park Not tbuy a new car fly to Paris or put a new wing on the house And in the good times they go out too! Radio Cheap / Flexible versus television Business are high cashflow generators / mostly cash low credit risk 4

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10 Post 30 June 2010: Separate Corporate facility to fund on market buy back $43 million Gold Coast Theme Parks facility renegotiated for 4 years expiring end

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13 Warner Bros. Movie World Hollywood on the Gold Coast, Iconic Brand Themed park with retail, themed rides and movie based entertainment Sea World Aquatic themed park, with themed rides and adventure play areas Includes displays of Polar Bears, Dolphins and other aquatic animals Wet n Wild Wild Wt Water Park Water slide based water park, thrill based offering for the +10 age bracket Water slides of varying thrill factor, wave pool and lazy river offerings Sea World Resort and Water Park Iconic resort accommodation focusing on families Located right next door to Sea World Australian Outback Spectacular Outback themed show and dinner Village Roadshow Studios Film production studios, offering both indoor and outdoor film production facilities Paradise Country Farm themed park, targeted at the overseas market, offering access to Australian Farm life 13

14 Sales Revenue: Primarily a cash based business revenue sources include: Ticket Sales, VIP Pass, day pass and multi ticket passes Accommodation sales Sea World Resort Retail Sales, souvenirs, towels, movie paraphernalia F&B Sales, restaurants, fast food offerings VIP Pass sales are pre paid and valid lid1 July 30 June each year Key Drivers to the businesses are attendance numbers, in park spend (F&B and Retail), multi park ticket sales Total Expenses: Labour Costs one of the largest costs of the group Maintenance Costs key spend to ensure parks and resorts are presented to a high quality Cost of Sales cost of sales for retail and F&B offering. Marketing spend maintain a high level awareness of the offering. Capex: Capital expenditure spend is critical to keeping the parks current and maintaining a high quality offering 14

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16 New attractions for FY2011 include: Sea World: Castaway Bay; Opened September 2010 Sea World: Penguin Encounter; Opens December 2010 Wet n Wild: Aqua Loop; Opened September

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19 Hawaii Wet n Wild Set on 29 acres in lush, tropical surrounds in Kapolei, Oahu s second city, Over 25 rides and attractions for families and thrill seekers alike. Hawaii s only water park and the #1 family attraction and #1 local attraction on the island The park services both the local population and tourists to the island The park is owned by CNL, VRL has a long term lease agreement with CNL Phoenix Wet n Wild Located in the Maricopa County's Adobe Dam Regional Park near the border of Phoenix and Glendale Seasonal water park which operates from April to September Park offers a range of water activities including the Tornado water slide and Lazy River The park mainly services the local population of Phoenix 19

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21 Hawaii Wet n Wild Purchased May 2008 Long term value Significant reduction in operation expenses with no diminution in guest experience Disney opening 900 room hotel in September / October 2011 Phoenix Wet n Wild Opened to the public July 2009 Successful second season Strong attendance on the back of annual pass sales Sydney Wet n Wild Construction will not be until at least 2012 Long term lease has been signed with NSW Government No other water park or indeed entertainment competition in Sydney Key EBITDA growth opportunity 21

22 Sydney Aquarium Iconic Sydney Attraction, which includes a range of aquatic animals Sydney Wildlife World Offers an enclosed zoo environment, showcasing the most iconic of Australian animals Sydney Tower Observatory Set at the top of Sydney s AMP tower and part of the new Westfield development, this viewing deck is the highest Sydney view point Manly Oceanworld An underwater world with interactive shows which allow you to feed the sharks, meet ancient turtles and observe the local wildlife up close. Includes Shark Dive Xtreme, a swim with the sharks experience Hamilton Island Wildlife Park A wildlife and koala sanctuary which offers close up experiences with koala s Kelly Tarlton s Antarctic Encounter and Underwater World Located in Auckland this is one of New Zealand s most well known Aquariums Breading place of Gento and King Penguins, large range of other aquatic animals 22

23 Key business drivers are similar to Gold Coast Theme Parks 23

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26 Roadshow Films Major distributor of Theatrical product in Australia and New Zealand Purchaser of film product from both independent and major film studios Significant key relationships with Warner. Bros and Village Roadshow Pictures Roadshow Entertainment Mj Major distributor ib t of DVD product tincluding both ththeatrical and TV series Operates in Australia and New Zealand Major distribution agreements with key movie studios Major agreements with ABC, BBC and Fremantle Roadshow Live Currently working in conjunction with Dainty Corporation to stage Live Musical Hairspray Roadshow TV Supplier of content to Pay and Free to air TV Mj Major agreements with the Nine Nt Network Roadshow Digital Supplier of content to Bigpond and itunes digital platforms 26

27 Sales Revenue Main sources of revenue are contract based from retailers and other intermediary organisations: Film hire charged to exhibitors for content Retailers of DVD content (ie JB HiFi, Big W) Major contract revenue from Pay TV and Free to Air providers Key business drivers are: Box Office DVD Units Price points, discounting and product releases Total Expenses Royalties for product, paid to Film Studios Purchase of content for reselling Labour including sales and marketing Marketing cost of marketing product Freight cost of getting the product to the retailer Capex This business is not capital intensive as it is a sell through business. 27

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30 New Australian CEO from October. Highly experienced Strong focus on operations and driving revenue 30

31 Operates throughout Victoria, NSW, Queensland, WA, South Australia, Northern Territory, Tasmania, Singapore and USA Major partnership (50%) with Greater Union mainly in NSW, Victoria and QLD Village managed sites in Victoria, GU manage sites in NSW and QLD Partnership (50%) with Golden Harvest in Singapore USA Gold Class, partnership (30%), premium cinema circuit 31

32 Sales Revenue Predominantly a cash based business with main sources of revenue being: Ticket sales Candy bar sales Key Business drivers are: Admission numbers which are driven by product (films) Total Expenses Film Hire amounts paid to distributors based upon box office revenue Labour costs high volume of casual labour Rent Significant cost associated with location costs in prime locations Capex Capital expenditure on technology (digital projectors) is key to achieving efficiencies and drive new revenue streams 32

33 Village and JV s with GUO (50% equity) 50 Sites/506 Screens Strong brands and premium offerings allow incremental ticketing strategies and better yield. 33

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35 Austereo leads Australia in Radio and On line / Interactive Separate public listed company, VRL ownership 52.5% 35

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37 No. 1 Sydney / Melbourne / Brisbane / Perth / Canberra / Newcastle No. 2 Adelaide Revenue $260.2m up 2.1% June 2010 highest sales in 10 years +30% campaigns integrated radio/online EBITDA $88.5m up 1.2% Online Average monthly UB s +25% to over 1.2 million Austereo now owns largest share of capital city DAB+ spectrum 27.1% Content Over 5 million listeners Over 40% of people 10+ via FM, digital radio, online and mobile Triple M The Grill Team / Hot Breakfast Today Hamish and Andy / Matt and Jo / Kyle and Jackie O 37

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39 Village Roadshow Pictures VRL ownership 40.4%, equity accounted investment Independent Film Financing business which operates in conjunction with Warner Bros. Co produced a total of 66 films, including Matrix Trilogy ConcordMusic Group One of USA s largest independent music library s Focused around niche genre titles that are not available in mainstream No impact on VRL Group results in last few years, no dividends have been paid by VREG as these have been re invested into new film product. 39

40 Important to VRL drives Exhibition and Distribution Debt facility US$1.0 billion, recourse to value of film library 40

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